eBusiness Weekly
Business Writer
Redwing Mine workers have lost confidence in the mine’s corporate rescue practitioner, Dr Cecil Madondo, who is facing criminal charges in court, and want him immediately replaced.
The workers have lost faith in Dr Madondo’s suitability to turnaround the company and protect their interests following his arrest just over two weeks ago on allegations of fraudulent conduct.
Madondo, who is the managing director of corporate rescue specialists, Tudor House Consultants (Pvt) Ltd, first signed exclusivity mining agreements with a company called Probadek Investment in respect of Redwing Mine covering 132 gold mining blocks, 8 copper mining blocks and any other mining claims belonging to Redwing Mine.
Well knowing that he had already entered into an agreement with Probadek Investments, Madondo allegedly entered into another agreement with Prime Royal Private limited giving them the same mining blocks.
It is alleged that in December, another prospective investor, Betterbrands Mining, entered into agreement with Madondo, giving them the same mining blocks.
Consequently, the complainant, Probadek Investment reportedly suffered a prejudice of US$260 000 in investment capital and fees paid in terms of the transaction due to Madondo’s conduct.
It is against this background that workers want Madondo replaced as the turnaround strategist. Metallon Corporation-owned Redwing Mine, was placed under his control in July last year after an application by the workers.
Through their lobby group, Zimbabwe Diamond and Allied Minerals Workers Union, the workers have already started the process of looking for another corporate rescue practitioner.
ZDAWU secretary general, Justice Chinhema, said in an interview with this publication that they want to replace Madondo with someone who will safeguard their interests and the company’s.
“What we have agreed is that we need to look for another corporate rescue practitioner who can safeguard the interest of the workers and the company,” said Chinhema.
“Our lawyer was at the office of The Master of High Court looking at the list of rescue practitioners so that we can do our selection. That will probably happen on Monday.”
Chinhema said at the time the company was placed under corporate rescue management, it had 800 workers who were owed about US$14 million backdated to 2012.
“We want all the money outstanding paid in full while the security of our workers is safeguarded,” said Chinhema.
Redwing Mine is located in Manicaland Province in eastern of Zimbabwe, about 20 kilometres northeast of the city of Mutare and 265 kilometres southeast of Harare. It used to be one of the largest gold producers in the country.
